This proposed study exploits transmit and receive diversity to mitigate multipath propagation and
interference in CDMA system which is characterized by multipath interference. Code Division Multiple Access
(CDMA) is the vital technology for modern wireless communication systems to share the available finite
amount of radio bandwidth expeditiously. The CDMA system has soft capacity which polishes off the problem
of limitation on the number of users in a system. In this paper the simulated results of CDMA system deployed
with transmit diversity using Alamouti code and receiver diversity with Maximum Ratio Combining (MRC)
technique are presented. The proposed system optimizes the effect of multipath propagation and concludes the
way to improve BER.